Research on the Institutional Influence on the Development of the High-Tech Industry

Abstract

This paper measures and analyzes the institutional influence on the development of China's high-tech industry from 1995 to 2016. The following discoveries are shown. The institutional environment on which China's high-tech industry depends has shown an increasing trend in recent years, but its momentum is obviously weaker than that in the early stage. The calculation results are the same and comprehensive whether the institutional variable is substituted directly into the production function as the explanatory variable or if it is put into the capital stock, labor force and Total factor productivity regression equations. The institutional influences on the input-output of the high-tech industry are very clear and positive, and its influence on the TFP is the greatest. Therefore, the continuous improvement of the institutional environment of high-tech industries is conducive to promoting the high-quality development of the industry.